Knowing how to create and stick to a realistic budget is the foundation of successfully managing your money. Let your kids learn the secrets of budgeting at an early age.
Talk to your kids about budgeting and give them the tools they need to create their own budgets and stick to them. Have younger kids create a budget for their own money and expenses over the course of a month, and have older kids try their hand at creating a realistic monthly budget for your family.
Budgeting Basics:
- Why budgeting is important
- How to separate spending and saving money
- Motivators for sticking to a budget
- Sometimes you have to be patient and save a lot before you can have something you really want
- There's never enough money to go around
- If they are old enough, teach them about the different ways of spending (Cash, Credit, and debit cards) as well as what loans are
One of the best ways to teach kids how to budget is to give them a weekly allowance. Giving kids a regular allowance allows them to know how much they're getting and when they are getting it. Their allowance should give just enough that they don't have to wait long to get small things such as a candy bar or ice cream, but should also require them to save for bigger items such as a video game or a new bike.
Teaching kids how to create budgets early in life is important, it will help create the habit of always saving money. If you build good money habits early on, it will be much easier to maintain those habits in the future. Thus creating a better life for your children for years to come.
